Malawi Stock Exchange (MSE) recorded mixed performance in July, registering a positive return on investment of 3.85 percent despite a decrease in both volume and value of traded shares, a market report shows.
The performance pushed upwards Malawi All Share Index (Masi)—the measure of local shares market performance—from 35144.56 points registered in June to 36 486.03 points in July, according to the market performance report for July.
Reads the report: “The price gains registered by Illovo at 20.81 percent, Airtel Malawi at 9.90 percent, FMBCH at 8.66 percent, Press Corporation Limited at 8.34 percent, TNM at 0.06 percent, NBM at 0.005 percent and Standard Bank at 0.001 percent were enough to offset share price losses registered by four counters.”
In the market report issued yesterday, MSE said National Invetment Trust Limited, Old Mutual Limited, NBS Bank and FDH Bank registered share price losses of -15 percent, -4.11 percent, -0.18 percent and -0.18 percent, respectively.
During the review period, the market transacted 21.99 million shares at K994.83 million in 298 trades, lower than 162.60 million shares transacted at K4.76 billion in 326 trades in June, reflecting an 86.48 percent decrease in volume and a 79.36 percent decrease in value.
Reads the report in part: “Daily average share trades exhibited similar trends where the market registered an average daily volume of 1 047 162 shares compared to 7 391 068 shares traded in June, reflecting a decrease of –85.83 percent.”
Market analysts say MSE performance is anticipated due to the Covid -19 pandemic.
MSE operations manager Kelline Kanyangala in an earlier interview urged caution, adding that the surge of the Covid-19 third wave poses a downside risk to performance of the market.
“Nonetheless, we are confident that the containment measures put in place by the Ministry of Health, which include the vaccination campaign, will bear fruit and shield the economy and general population from tragic outcomes,” she said.